Long-Term Care Rate Filing - MedAmerica Insurance Co. (Individual)
Rate request - 37 percent average increase
Decision - Disapproved March 1, 2013
On January 16, 2013, MedAmerica Insurance Company requested an average increase of 37 percent for its long-term care plans. The plans were sold in Connecticut from March 2004 through November 2007 and are no longer being marketed. The renewals are guaranteed, meaning the company cannot refuse to renew a policy. There are 124 policies currently in effect in Connecticut. The company said it sought the increase because of the combination of higher persistency and the interest it is receiving on its investments earmarked to pay for future claims is lower than expected.
After an actuarial, the Department determined that the company has had few claims costs in Connecticut since 2005 and that any increase at this time would be unjustified. As a result, the Department rejected MedAmerica’s request on March 1, 2013.
Content Last Modified on 3/1/2013 2:25:19 PM